Bitcoin (BTC) is the best financial revolution of the fashionable age. By merely shopping for and holding Bitcoin, residents are staging a peaceable protest towards the indentured servitude introduced on by fiat economics. Within the course of, they’ve initiated one of many best wealth transfers of all time — a course of that can take many years to play out absolutely.
Bitcoin has additionally galvanized a trillion-dollar cryptocurrency and blockchain trade — a double-edged sword that’s each inspiring and horrifying. Sam Bankman-Fried, the disgraced founding father of the now-bankrupt FTX Group, is a case research of what can go incorrect when pariahs are answerable for main firms. Sam Bankman-Fried, or SBF as he’s usually known as, has “sincerely apologized” for defrauding traders, conning auditors and utilizing buyer funds to prop up FTX’s sister hedge fund. We haven’t even untangled the political internet that SBF finds himself in — one that will embrace Gary Gensler of the US Securities and Trade Fee.
This week’s Crypto Biz continues to unpack the implosion of FTX, which, as of 10 days in the past, was the second-largest digital asset alternate on the earth.
Sam Bankman-Fried is ‘below supervision’ in Bahamas, trying to flee to Dubai
After denying rumors that he fled to Argentina over the weekend, SBF was mentioned to be below supervision within the Bahamas alongside FTX executives Gary Wang and Nishad Singh. A supply accustomed to the matter knowledgeable Cointelegraph that it will be troublesome for the trio to go away the nation on their very own accord. The identical supply, who selected to stay nameless, additionally claimed that Alameda Analysis CEO Caroline Ellison was making an attempt to flee to Dubai to keep away from extradition to the US. Regardless of making an attempt to convey a modest way of life to the general public, SBF lives in a $40 million penthouse within the Bahamas.
FTX fallout continues: BlockFi reportedly mulling chapter, SALT pauses withdrawals and deposits
The fallout from the FTX debacle was each quick and devastating as Bitcoin lender BlockFi halted platform exercise, resulting in credible rumors that it was on the verge of chapter. In an official replace to purchasers on Nov. 14, BlockFi mentioned it had “vital publicity” to FTX and its affiliated corporations. In the meantime, crypto lending firm SALT additionally disclosed this week that it was halting platform exercise, together with pausing all deposits and withdrawals, because of the FTX contagion. As Cointelegraph reported, SALT CEO Shawn Owen has denied allegations that his firm was “going bust.” However, issues don’t look good for SALT customers for the time being.
Salt lending goes bust.
In the event you at the moment have cash on a lending platform or “earn” platform, GET IT OFF. pic.twitter.com/eOIGG8yTrO
— Coffeezilla (@coffeebreak_YT) November 15, 2022
Genesis World halts withdrawals citing ‘unprecedented market turmoil’
On Nov. 16, the FTX contagion spilled over into the institutional markets as liquidity supplier Genesis World introduced a short lived suspension of withdrawals resulting from “unprecedented market turmoil.” Genesis World isn’t a family identify in crypto, nevertheless it does present liquidity to Grayscale’s Bitcoin Funding Belief, which at the moment has over $20 billion in web belongings. Genesis managed to climate the Three Arrows Capital collapse earlier this 12 months, having since filed a $1.2 billion declare towards the failed hedge fund. It’s unclear whether or not Genesis will survive the FTX meltdown, because it had $175 million value of funds caught on the alternate.
FTX chapter freezes thousands and thousands value of crypto firm funds
Along with BlockFi, SALT and Genesis World, a number of corporations have been left holding the bag on FTX’s chapter. Hedge fund Galois Capital is mentioned to have as a lot as $50 million value of crypto caught on FTX. New Huo Know-how, which owns the Hong Kong crypto alternate Hbit, has been unable to withdraw $18.1 million of digital belongings from FTX. Nestcoin, a Nigerian Web3 startup, has reported related issues however didn’t disclose how a lot cash was locked up on SBF’s alternate. FTX touched each nook of the cryptocurrency market, leaving thousands and thousands of individuals uncovered. Extra particulars will come to mild within the coming weeks and months.
An replace shared with our traders earlier at this time on the FTX incident and its affect on @Nestcoin. pic.twitter.com/0Mjo4SYF7R
— YB (25,25) ⏳ (@YeleBademosi) November 14, 2022
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